The home-based jewelry businesses have a continual raging debate on pricing. Those creating for a living (or a substantial income) are infuriated with those who do it for a hobby.
In the end it's always a stalemate. Life reverts back to demand and supply, the market shall govern.
Here's my latest creation (below, at least I'm trying), which is intended for an art show in April. I'm setting the price higher than I used to, however, lower than the pros.
BUTTERFLY GARDEN NECKLACE & EARRING SET
Three filigree butterflies anchor the double strand, hand made chain composed of pearl, amethyst, tiger eye, fiber optic, gold tone, and glass beads. Matching earrings are hung on gold plated wires.
Prices goin up... but still a bargain
February 6th, 2007 at 02:40 pm
February 6th, 2007 at 03:38 pm 1170776328
February 6th, 2007 at 04:58 pm 1170781110
The pricing game is hard for small businesses. We have a side photography business we run out of our home. Basically we started this because we wanted people to have an alternative to the mall, cookie-cutter studios. We wanted to give people a unique picture, but still at a good price. We don't plan to become rich with our business - basically just pay for itself and to and maybe a little extra income.
The problem is if you set your prices low, people will have low expectations. They don't feel like they will get quality if you are much cheaper than your competitors. Our prices are simular to the Sears studio in town - so peoples expectations are going to be simular to a Sears portrait - not the high end studios in town. I would like to think we are a better alternative to Sears, but our prices do not reflect it. The pricing is really a delima for me - I personally (because I am a tight-wad) would not pay our full prices, but if I charge less people are going to think they are getting crap.
Your company name also leads to some pre-concieved expectations. I TOTALLY understand what you are about - you enjoy making the jewlery, you want to offer your art to others and maybe make a few extra $$ on the side. However, when I see your name, I think the jewlery is going to be "cheap" in quality also. I am not saying yours is - this is just the feeling I get when I look at your name.
I know this isn't really the advise you were looking for and I am sorry if I offended you. This is just my personal small business experience. In the end, YES, RAISE YOUR PRICES!!!! As messed up as it sounds, I think it will help your business.
February 6th, 2007 at 06:19 pm 1170785948
I hope you stick with the photo sideline. If you do something you love, it will never disappoint.
BTW, I have a google adwords account (very very small budget). It posts my ad on the sidebar when people google certain words I have chosen. [The more you spend the higher rank your ad will show up. My budget is so small the ad probably shows up on the 3rd, 4th or 5th page!] Anyway, believe it or not I still get a few clicks on my ad! And the word folks are using the most when they see my ad is ..... BARGAIN!
For now, I'll be Pretty Cheap Jewelry. Maybe I'll open a new line of upscale design (like the clothing designers) and call it Pretty Expensive Jewelry!
February 7th, 2007 at 04:23 am 1170822224
the only downside is that usually with such a low profit margin they don't do much in the way of advertising and it does take some research to find them.. i'm willing to do the work and i appreciate the prices too...
but i do also know that there are people out there that think differently... that judge value based on price... i guess it all depends...